The only three emerging-market stock pickers who avoided losing money for clients in the worst first- half rout since 1998 say now’s the time to buy Philippine retailers, Chinese Internet companies and Indian drugmakers.
Carson Block, the short seller and analyst who sparked a 74 percent drop in Sino-Forest Corp. shares when he said the company misstated its business, is finding it harder to attract believers to his latest research.
Emerging-market stocks declined after a seven-week rally sent valuations to the most expensive level since September. Technology shares slumped before earnings this week from companies including Samsung Electronics Co.
Chinese small and mid-size stocks are attractive as monetary authorities may cut interest rates once or twice more this year, said David Semple, who oversees $35 billion in assets at Van Eck Associates Corp.
U.S.-listed Chinese stocks fell for a second day, led by Baidu Inc. and Soufun Holdings Ltd, on concern policy makers won’t do enough to blunt an economic slump as the government keeps restrictions on the housing market.